The road to customer loyalty paved with service customization

Abstract

Previous research reveals that frontline employees can engage in two types of service customization, one that includes customizing offerings, referred to as “service offering adaptation,” and another that includes customizing interpersonal behavior, referred to as “interpersonal adaptive behavior.” While research indicates that both types of service customization are important to building customer relationships, limited research has simultaneously examined both aspects and the mechanisms accounting for their effects. Drawing from cognitive appraisal, emotion, and relationship marketing theory, this research offers a conceptual model that delineates emotions as explanatory mechanisms of service customization. The results indicate that emotions, particularly gratitude, can account for customization's positive effect on trust and subsequently loyalty. These findings offer implications for theory and marketing managers, as well as reveal fruitful avenues for future research.